Free Resources for Loan Modification Help

Free Resources for Loan Modification Help

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LAS VEGAS -- The loan modification process can be a long, painful, and even expensive.

There have been nearly 60,000 notices of default filed in Nevada since last summer. Thousands of those homeowners have called their banks asking for help but say their pleas are falling on deaf ears.

Wells Fargo is one of the largest lenders in the state and has a few recommendations. Bank officials say you must prove your hardship in a letter that lists your monthly expenses and financial commitments. You must also have financial statements to prove your income.

In some cases, state mediation can help but only to a certain point.

"I think the biggest misconception is the program can force the banks to reduce principal, and we can't do that. What we provide is a forum to bring these two major stakeholders together to discuss the loan because we know the number one problem is the homeowner can't reach the lender," said Verise Campbell, State Mediation Program.

Since the program started last July, more than 80 percent of the homeowners who have gone through it have been able to keep their homes. While very few will get their principle lowered, the banks have reduced their interest rate to 2 percent.

There are some places where you can get free loan modification help:

 

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